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Endogenous Reactivity in a Dynamic Model of Consumer’s Choice
Joint Authors
Tramontana, Fabio
Naimzada, Ahmad K.
Source
Discrete Dynamics in Nature and Society
Issue
Vol. 2012, Issue 2012 (31 Dec. 2012), pp.1-9, 9 p.
Publisher
Hindawi Publishing Corporation
Publication Date
2012-03-14
Country of Publication
Egypt
No. of Pages
9
Main Subjects
Abstract EN
We move from a boundedly rational consumer model (Naimzada and Tramontana, 2008, 2010) characterized by a gradient-like decisional process in which, under particular parameters conditions, the asymptotical convergence to the optimal choice does not happen but it does under a least squared learning mechanism.
In the present paper, we prove that even a less sophisticated learning mechanism leads to convergence to the rational choice and also prove that convergence is ensured when both learning mechanisms are available.
The stability results that we obtain give more strength to the rational behavior assumption of the original model; in fact, the less demanding is the learning mechanism ensuring convergence to the rational behavior, the higher is the probability that even quite naive consumers will learn the composition of their optimum consumption bundles.
American Psychological Association (APA)
Naimzada, Ahmad K.& Tramontana, Fabio. 2012. Endogenous Reactivity in a Dynamic Model of Consumer’s Choice. Discrete Dynamics in Nature and Society،Vol. 2012, no. 2012, pp.1-9.
https://search.emarefa.net/detail/BIM-507231
Modern Language Association (MLA)
Naimzada, Ahmad K.& Tramontana, Fabio. Endogenous Reactivity in a Dynamic Model of Consumer’s Choice. Discrete Dynamics in Nature and Society No. 2012 (2012), pp.1-9.
https://search.emarefa.net/detail/BIM-507231
American Medical Association (AMA)
Naimzada, Ahmad K.& Tramontana, Fabio. Endogenous Reactivity in a Dynamic Model of Consumer’s Choice. Discrete Dynamics in Nature and Society. 2012. Vol. 2012, no. 2012, pp.1-9.
https://search.emarefa.net/detail/BIM-507231
Data Type
Journal Articles
Language
English
Notes
Includes bibliographical references
Record ID
BIM-507231